A result of the steady replacement of defined benefit pension plans with defined contribution plans has been the increase of individuals' level of responsibility concerning their own eventual retirement income.

Defined Benefit Pension Plans

Retirement plans where an employer guarantees a specified pension amount to employees based on salary history and length of service.

Defined Contribution Plans

Retirement savings plans where the amount of the retirement benefits is determined by the contributions made by the employee and/or the employer.

Retirement Income

Money an individual receives after retiring from active employment, usually in the form of pensions, savings, or investments.